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5 Examples of Embedded Insurance in 2023

Embedded insurance means allowing customers to buy specialist cover as part of a wider purchase. It often means buying insurance directly at the point of sale (POS). There’s no need to interrupt the sales journey, and no need to make a separate transaction. Instead, the cost of cover is simply added to their overall bill, and the customer purchases both the product or service, and the cover, with a single payment.

In this post we’ll discuss some examples of how businesses are giving their customers increased cover and full peace of mind with convenient and cost-effective embedded insurance products.

How Banks Offer Embedded Insurance

Banks might offer a few types of embedded insurance products. Some banks include a level of travel insurance, mobile phone insurance, airport lounge access and car breakdown cover with some of their paid bank accounts.

Examples of Credit Card Company Embedded Cover

Credit Card companies may embed cover relating to customer spending.  For example, Purchase Protection which can cover for theft and accidental damage. And Delivery Protection to cover a purchased item that may get lost during delivery, or if it may arrive defective, or in a state that doesn’t match the original product description.

Car Insurance From Dealerships

Some car dealerships offer embedded motor insurance or car tax with the sale of a car. In the UK, it’s illegal to drive without at least third-party car insurance cover. Apart from anything else, allowing customers to purchase insurance along with a new car means they can legally drive it home from the dealership. But it also gives customers one less thing to worry about.

Embedded Travel Insurance

Travel companies, such as online holiday booking websites and tour operators offer customers the opportunity to purchase travel insurance when they buy a ticket.

Many businesses are now including travel insurance as part of their employee benefit scheme, particularly if their staff have to travel for work.

The form of cover provided will vary but it could include cover for the following: personal injury, cover for lost, damaged or stolen luggage, airport delays, flight cancellations or cover in the event that you are unable to travel due to illness or injury. Very few, if any, travel companies offer straightforward refunds. So having travel insurance gives customers and staff that extra peace of mind.

Read our full guide to travel insurance, and how it works.

Embedded Health and Dental Insurance

Some businesses and companies offer specialist health insurance cover to their employees and customers – even if they’re not an insurance or healthcare provider.

Examples of this might include:

  • Businesses offering private medical or dental insurance as part of an employee benefit package.
  • A hotel, airline, or other travel business offering customers overseas medical cover as an add-on to their trip.
  • Gyms and sport clubs offering cover for physiotherapy as part of a membership package.
  • Financial services offering life insurance policies as part of other financial products.

Read our full guide to embedded health insurance.

Looking to Offer Embedded Insurance Cover to Your Customers or Employees?

At Capacity Insights, we specialise in providing flexible and comprehensive healthcare and travel cover to businesses and companies for their customers or employees.

Whether you’re looking to invest in your first embedded insurance plan, or you want to change or add to your current package, we’re here for you.

Get in touch to find out more and see how we can help you.

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